Clean Energy and Total Signed JV for Renewable Natural Gas

In a 50-50 joint venture, Clean Energy Fuels Corp. and its largest shareholder, Total SE has announced the agreement to develop carbon-negative renewable natural gas (RNG) production facilities, as well as credit support to build additional downstream RNG fueling infrastructure, in the United States.

March 05, 2021. By News Bureau

In a 50-50 joint venture, Clean Energy Fuels Corp. and its largest shareholder, Total SE has announced the agreement to develop carbon-negative renewable natural gas (RNG) production facilities, as well as credit support to build additional downstream RNG fueling infrastructure, in the United States.

With an initial commitment of $100 million, it can increase to $400 million with the progress of the development opportunities.

Commenting on the partnership, Andrew J. Littlefair, CEO and president of Clean Energy said, “The finalization of this JV with Total, which was originally announced in December of last year, demonstrates the commitment both companies have to the growth of RNG, a fuel that can tackle serious climate issues. The demand by customers for RNG continues to accelerate, highlighted by our recent announcement that the largest bus fleet in the U.S., LA Metro, had converted their entire fleet to RNG. This JV will help Clean Energy to continue to increase its supply of RNG in the years ahead.”

With the Zero Now scheme, which allows fleets to buy RNG trucks for the same price as diesel trucks, the companies have already collaborated to extend the use of RNG in the heavy-duty truck industry.

Total will also provide credit support for RNG value chain Clean Energy growth, including $45 million for contracted RNG fueling infrastructure. RNG can be used directly as a vehicle fuel or can be used as a feedstock to produce “green” hydrogen or “green” electricity and still generate LCFS environmental credits.

Carbon emissions from dairies are collected and converted into transportation fuel, thereby producing carbon-negative RNG, and reducing the harmful effects of long-term climate change. As a result, the California Air Resources Board assigns a -317 weighted average carbon intensity (“CI”) Score (gCO2e/MJ) to these carbon-negative RNG ventures, compared to 100 for diesel and 19 for electric batteries.

 

 

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